Market Analysis: EUR/USD Trims Gains
EUR/USD started a downside correction from 1.1740.
Important Takeaways for EUR/USD Analysis Today
– The Euro struggled to clear 1.1740 and corrected gains against the US Dollar.
– There was a break below a key bullish trend line with support at 1.1705 on the hourly chart of EUR/USD.
EUR/USD Technical Analysis
On the hourly chart of EUR/USD, the pair gained pace for a move above 1.1650. The Euro tested 1.1735 and recently corrected gains against the US Dollar.
The pair dipped below 1.1700 and a key bullish trend line with support at 1.1705. It sparked a move below the 50% Fib retracement level of the upward move from the 1.1574 swing low to the 1.1736 high.
The pair shows some bearish signs below the 50-hour simple moving average, and gains might remain capped since the RSI is now below 50. Immediate resistance on the upside is near 1.1655. The next key hurdle for the bulls could be near the 50-hour simple moving average at 1.1675.
An upside break above 1.1675 might send the pair toward 1.1705. Any more gains might open the doors for a move toward 1.1740.
On the downside, immediate support on the EUR/USD chart is seen near the 76.4% Fib retracement at 1.1610. The next major area of interest is 1.1575. A downside break below 1.1575 could send the pair toward the 1.1500 handle.
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